Segment Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company operates in a decentralized fashion in the following principal business activities: retail banking services; wealth management services; and mortgage banking services.  

• Revenue from retail banking activity consists primarily of interest earned on loans and investment securities and service charges on deposit accounts.

• Revenue from the wealth management activities is comprised of fees based upon the market value of the accounts under administration as well as commissions on investment transactions.

• Revenue from the mortgage banking activities is comprised of interest earned on loans and fees received as a result of the mortgage origination process. The Company recognized gains on the sale of loans as part of other income. On May 15, 2014, the Company sold all of its majority interest in Southern Trust Mortgage and as a result, any mortgage banking activity for the Company subsequent to the sale date is included with the results of the retail banking segment. Any activity since the sale of Southern Trust Mortgage is considered to be immaterial and incidental to the Company's retail banking activities. The mortgage banking activities will continue to be evaluated and will be separately reported as a distinguishable segment if determined to be of significance to the reader of these financial statements or if the related operating results are believed to meet the quantitative tests for disclosure. Mortgage banking activities for the twelve months ended December 31, 2014 and 2013 are the result of Southern Trust Mortgage activity that was consolidated with the Company through the date of sale.

Middleburg Bank and the Company have assets in custody with Middleburg Trust Company and accordingly pay Middleburg Trust Company a monthly fee. Middleburg Bank also pays interest to Middleburg Trust Company on deposit accounts with Middleburg Bank. Middleburg Bank provides a warehouse line and office space, data processing and accounting services to Southern Trust Mortgage for which it received income. Transactions related to these relationships are eliminated to reach consolidated totals.

Information about reportable segments and reconciliation to the consolidated financial statements follows:

	2015
(Dollars in thousands)	Commercial & Retail Banking		Wealth Management		Mortgage Banking		Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	42,270	$	11	$	—	$	—		$	42,281
Wealth management fees	—		4,951		—		(166		)	4,785
Other income	5,605		—		—		—			5,605
Total operating income	47,875		4,962		—		(166		)	52,671
Expenses:
Interest expense	4,207		—		—		—			4,207
Salaries and employee benefits	16,130		2,305		—		—			18,435
Provision for loan losses	2,293		—		—		—			2,293
Other expense	16,237		1,120		—		(166		)	17,191
Total operating expenses	38,867		3,425		—		(166		)	42,126
Income before income taxes and non-controlling interest	9,008		1,537		—		—			10,545
Income tax expense	2,131		584		—		—			2,715
Net income	$	6,877	$	953	$	—	$	—		$	7,830
Total assets	$	1,415,626	$	12,461	$	—	$	(133,224	)	$	1,294,863
Capital expenditures	$	2,137	$	—	$	—	$	—		$	2,137
Goodwill and other intangibles	$	—	$	3,636	$	—	$	—		$	3,636

	2014
(Dollars in thousands)	Commercial & Retail Banking		Wealth Management		Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	43,149	$	14	$	450		$	(288	)	$	43,325
Wealth management fees	—		4,516		—			(154		)	4,362
Other income	5,349		—		5,121			(46		)	10,424
Total operating income	48,498		4,530		5,571			(488		)	58,111
Expenses:
Interest expense	5,227		—		304			(288		)	5,243
Salaries and employee benefits	16,567		2,262		3,772			—			22,601
Provision for loan losses	1,926		—		34			—			1,960
Other expense	15,818		1,140		1,722			(200		)	18,480
Total operating expenses	39,538		3,402		5,832			(488		)	48,284
Income before income taxes and non-controlling interest	8,960		1,128		(261		)	—			9,827
Income tax expense	1,894		447		—			—			2,341
Net income	7,066		681		(261		)	—			7,486
Non-controlling interest in consolidated subsidiary	—		—		98			—			98
Net income attributable to Middleburg Financial Corporation	$	7,066	$	681	$	(163	)	$	—		$	7,584
Total assets	$	1,338,604	$	12,953	$	—		$	(128,700	)	$	1,222,857
Capital expenditures	$	911	$	6	$	3		$	—		$	920
Goodwill and other intangibles	$	—	$	3,807	$	—		$	—		$	3,807

	2013
(Dollars in thousands)	Commercial & Retail Banking		Wealth Management		Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	43,702	$	14	$	1,773		$	(1,217	)	$	44,272
Wealth management fees	—		4,139		—			(169		)	3,970
Other income	4,527		—		16,473			(431		)	20,569
Total operating income	48,229		4,153		18,246			(1,817		)	68,811
Expenses:
Interest expense	6,444		—		1,340			(1,217		)	6,567
Salaries and employee benefits	16,464		2,187		11,976			—			30,627
Provision for loan losses	105		—		4			—			109
Other expense	17,916		1,195		4,903			(600		)	23,414
Total operating expenses	40,929		3,382		18,223			(1,817		)	60,717
Income before income taxes and non-controlling interest	7,300		771		23			—			8,094
Income tax expense	1,608		323		—			—			1,931
Net income	5,692		448		23			—			6,163
Non-controlling interest in consolidated subsidiary	—		—		(9		)	—			(9		)
Net income attributable to Middleburg Financial Corporation	$	5,692	$	448	$	14		$	—		$	6,154
Total assets	$	1,222,837	$	5,909	$	41,745		$	(42,738	)	$	1,227,753
Capital expenditures	$	895	$	—	$	33		$	—		$	928
Goodwill and other intangibles	$	—	$	3,979	$	1,367		$	—		$	5,346